Shareholders' Equity

9 Months Ended

Sep. 30, 2019

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Capital Requirements

Shareholders' Equity

Regulatory Capital Requirements

Capital levels at September 30, 2019 exceeded the regulatory minimum levels to be considered “well capitalized.”

The following table presents the Corporation’s and the Bank’s actual capital amounts and ratios, as well as the corresponding minimum and well capitalized regulatory amounts and ratios that were in effect during the respective periods:

(Dollars in thousands)	Actual				For Capital Adequacy Purposes				To Be “Well Capitalized” Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
September 30, 2019
Total Capital (to Risk-Weighted Assets):
Corporation		$486,454	12.94	%		$300,835	8.00	%	N/A		N/A
Bank	483,783		12.87		300,790		8.00			$375,988	10.00	%
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	459,140		12.21		225,627		6.00		N/A		N/A
Bank	456,469		12.14		225,593		6.00		300,790		8.00
Common Equity Tier 1 Capital (to Risk-Weighted Assets):
Corporation	437,142		11.62		169,220		4.50		N/A		N/A
Bank	456,469		12.14		169,195		4.50		244,392		6.50
Tier 1 Capital (to Average Assets): (1)
Corporation	459,140		8.97		204,810		4.00		N/A		N/A
Bank	456,469		8.92		204,722		4.00		255,903		5.00
December 31, 2018
Total Capital (to Risk-Weighted Assets):
Corporation	455,699		12.56		290,146		8.00		N/A		N/A
Bank	453,033		12.49		290,128		8.00		362,660		10.00
Tier 1 Capital (to Risk-Weighted Assets):
Corporation	428,338		11.81		217,609		6.00		N/A		N/A
Bank	425,672		11.74		217,596		6.00		290,128		8.00
Common Equity Tier 1 Capital (to Risk-Weighted Assets):
Corporation	406,340		11.20		163,207		4.50		N/A		N/A
Bank	425,672		11.74		163,197		4.50		235,729		6.50
Tier 1 Capital (to Average Assets): (1)
Corporation	428,338		8.89		192,690		4.00		N/A		N/A
Bank	425,672		8.84		192,652		4.00		240,815		5.00

(1) Leverage ratio.

In addition to the minimum regulatory capital required for capital adequacy purposes included in the table above, the Corporation is required to maintain a minimum capital conservation buffer, in the form of common equity, in order to avoid restrictions on capital distributions and discretionary bonuses. The required amount of the capital conservation buffer was 1.875% on January 1, 2018. The capital conservation buffer increased another 0.625% on January 1, 2019, reaching the full requirement of 2.50%.

The Bancorp owns the common stock of two capital trusts, which have issued trust preferred securities. In accordance with GAAP, the capital trusts are treated as unconsolidated subsidiaries. At both September 30, 2019 and December 31, 2018, $22.0 million in trust preferred securities were included in the Tier 1 Capital of the Corporation for regulatory capital reporting purposes pursuant to the FRB’s capital adequacy guidelines.